A machine can be purchased for $110,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.

Year 1 Year 2 Year 3 Year 4 Year 5 Net income $7,400 $18,400 $43,000 $27,700 $73,600 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Depreciation Year Net Income Net Cash Flow Cumulative Cash Flow (110,000)$ C (110,000) 1 $ 7,400 18,400 43,000 4 27,700 0 5 73,600 0 Payback period =